COONOOR CLUB Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) THE question referred at the instance of the assessee is, 'whether on the facts and in the circumstances of the case the Tribunal was right in holding that the applicant was rightly assessed to tax under the WT Act, 1957 ?'

(2.) THE assessee had filed a Nil return under the WT Act in response to notice issued under Section 16(2) of the WT Act. It relied on the decision in the assessee's own case for earlier years wherein it had been held that the club was not an AOP taxable under the WT Act. The AO who proceeded to make an assessment nevertheless observed that the earlier decision of the Tribunal had not been accepted by the Revenue. On appeal, the AO's view was affirmed after observing that the appellant is an 'AOP'. The appellate authority relied on the decision of this Court in the case of Coimbatore Club v. WTO (1985) 153 ITR 172. On further appeal to the Tribunal, the Tribunal held that it was bound by the decision of this Court in the case of Coimbatore Club and dismissed the assessee's appeal.

(3.) OUR answer to the question therefore, has to be and is against the Revenue and in favour of the assessee.